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I called my broker to find out what price triggers the stop order. According
to them it is the Bid that triggers a stop order.
neo
~ -----Original Message-----
~ From: owner-metastock@xxxxxxxxxxxxx
~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of neo
~ Sent: Thursday, September 06, 2001 10:09 AM
~ To: metastock@xxxxxxxxxxxxx
~ Subject: RE: Stop Orders: Market vs. Limit
~
~
~ I still do not understand stop orders. What exactly is meant by
~ "once your
~ stop is elected"?
~ What exactly triggers the stop price? The bid, the ask, most
~ recent price,
~ any order past the price?
~
~ Thanks, neo
~
~ ~ -----Original Message-----
~ ~ From: owner-metastock@xxxxxxxxxxxxx
~ ~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Al Taglavore
~ ~ Sent: Tuesday, September 04, 2001 2:11 PM
~ ~ To: metastock@xxxxxxxxxxxxx
~ ~ Subject: Re: Stop Orders: Market vs. Limit
~ ~
~ ~
~ ~ Quoted from a Lind-Waldock order guide;
~ ~
~ ~ "2.Limit order-Use this type of order when you want to be filled
~ ~ only at a
~ ~ specified price or better. A limit buy order is placed at or
~ below the
~ ~ current market price, while a limit sell order is placed at
~ or above the
~ ~ current price.With certain caveats, you are guaranteed a fill if
~ ~ the market
~ ~ trades THOUGH your price. If the market merely trades AT
~ your price, you
~ ~ are not guaranteed a fill.
~ ~
~ ~ "8.Stop Limit order-Use this type of ordr when you don't want to
~ ~ be filled
~ ~ any worse than your stop price. Here, your stop and limit
~ prices are the
~ ~ same. Again, your order will become a straight limit order
~ if, once your
~ ~ stop is elected, the broker is unable to execute your order
~ at your price
~ ~ or better."
~ ~
~ ~ Hope this helps.
~ ~
~ ~ AlT
~ ~ ----------
~ ~ > From: neo <neo1@xxxxxxxxx>
~ ~ > To: metastock@xxxxxxxxxxxxx
~ ~ > Subject: RE: Stop Orders: Market vs. Limit
~ ~ > Date: Tuesday, September 04, 2001 11:27 AM
~ ~ >
~ ~ > Claud
~ ~ >
~ ~ > What do you mean by the "price"? As I understand it, a
~ limit order must
~ ~ be
~ ~ > executed within the bid ask spread. If one had a stop
~ market order at,
~ ~ say,
~ ~ > 6% below the current price, could someone place a limit order
~ ~ at 7% below
~ ~ > the current price and capture your stop order? What
~ determines when the
~ ~ stop
~ ~ > "price" is hit?
~ ~ >
~ ~ > Thanks, neo
~ ~ >
~ ~ > ~ -----Original Message-----
~ ~ > ~ From: owner-metastock@xxxxxxxxxxxxx
~ ~ > ~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Claud Baruch
~ ~ > ~ Sent: Saturday, September 01, 2001 2:06 PM
~ ~ > ~ To: metastock@xxxxxxxxxxxxx
~ ~ > ~ Subject: Re: Stop Orders: Market vs. Limit
~ ~ > ~
~ ~ > ~
~ ~ > ~ There are 4 orders:
~ ~ > ~
~ ~ > ~ Market Order.....you sell at the bid.
~ ~ > ~ Limit Order....You will only sell at your specified limit. (No
~ ~ guarantee
~ ~ > ~ of execution.
~ ~ > ~ Stop Order....Once the price you designate as "Stop", it becomes
~ ~ > ~ a market order.
~ ~ > ~ Stop Limit...Once the price reaches your designated price,
~ ~ it becomes
~ ~ > ~ a limit Order...you won't accept less. (No guarantee of
~ execution.)
~ ~ > ~
~ ~ > ~ Claud
~ ~ > ~
~ ~ > ~ neo wrote:
~ ~ > ~
~ ~ > ~ > Would someone please further my understanding of
~ market and limit
~ ~ stop
~ ~ > ~ > orders?
~ ~ > ~ >
~ ~ > ~ > As I understand it, all limit orders must be filled within the
~ ~ bid/ask
~ ~ > ~ > spread. With a stop market order, it seems that someone could
~ ~ > ~ just place a
~ ~ > ~ > limit order and buy/sell one's stock well outside of the
~ ~ > ~ trading range. Is
~ ~ > ~ > this true? If so, they would be useless.
~ ~ > ~ >
~ ~ > ~ > The problem with a limit stop order is that the price could be
~ ~ > ~ passed in a
~ ~ > ~ > gap and not get filled.
~ ~ > ~ >
~ ~ > ~ > Thanks, neo
~ ~ > ~
~ ~
~
~
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